TLDR:
- Japan’s cabinet approves cryptocurrencies as investment assets for venture capital firms.
- The amendment aligns with Prime Minister Kishida’s “new capitalism” vision, fostering Japan’s web3 industry and offering tax incentives for crypto investments.
Japan has recently approved cryptocurrencies as investment assets for venture capital firms, marking a significant shift in the country’s investment landscape. This decision, announced by the Ministry of Economy, Trade and Industry, allows venture capital firms to invest in cryptocurrency-issuing projects directly. The amendment to the Act on Strengthening Industrial Competitiveness aims to enhance Japan’s strategic investment environment for startups and medium-sized companies. This regulatory change aligns with Prime Minister Kishida’s vision of “new capitalism,” promoting Japan’s web3 industry and offering tax incentives for crypto investments.
The decision also coincides with regulatory measures by Japan’s financial regulator to protect users from illegal transfers involving cryptocurrencies. The Financial Services Agency has proposed initiatives to increase surveillance of suspicious transactions to cryptocurrency exchange providers, ensuring regulatory oversight for user protection. This balanced approach demonstrates Japan’s dedication to fostering a vibrant investment environment for the growing Web3 sector while prioritizing security.
